196 Colorado 133

Hotchkiss, CO 81419

$32,000B-

2 bd · 1.0 ba · 980 sqft · Built 1980 · SingleFamily · Active · 275 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $934/mo
• Mortgage (P&I): −$168
• Tax + insurance: −$53
• HOA: −$0
• Vac / Maint / Mgmt: −$196
• Net cashflow: $517/mo
• Annual: $6,203/yr
• Cap rate: 25.68%
• Cash-on-cash: 69.23%
• DSCR: 4.08
• 1% rule: 2.92%
• Cash to close: $8,960

Investor read

• This is a 2-bed/1.0-bath single-family listed at $32k.
• At list price, monthly cash flow is $517 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($934 rent vs $32k).
• It's been on market 275 days — a 12% lower offer ($28k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $28k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $221 of loan paydown is wiped out by about $960 of value loss. Plan a longer hold.
• Location reads 62/100 on livability (#202 in CO) — a middle-class / working-renter tenant base. Strengths: cost of living A+, crime B; Watch: amenities F, commute F, employment F.
• Delta County Joint District No. 50 (town): math 29% / reading 43% proficiency, ranked #38 of 86 in CO (top 44%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hotchkiss Elementary School (math 37% / reading 42%, grade F, #357 of 966 statewide, top 40%, 316 students, 54% FRL); North Fork High School (math 34% / reading 54%, grade F, #141 of 381 statewide, top 39%, 296 students, 41% FRL).
• Market conditions: 51 active listings in the ZIP; 113 units permitted in Delta County in 2024 (50 in 5+ unit buildings).
• Delta County population projected at -29% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $9k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 275 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.